Lean & agile 101 for Astute Entrepreneurs

Claudio Perrone

written, illustrated and performed by

After reading this,

Tell this person why you are here and what you hope to learn.

introduce yourself to a person you don’t know yet.

@agilesensei

“ --- Steve Blank & Bob Dorf

Customer development is useless unless the product development organization can iterate the product with speed and agility.

Pair Customer Development with Agile Development

If we keep acting like most entrepreneurs…

“ (*) The only statistics you can trust are those you falsified yourself --(often falsely attributed to) Winston Churchill

… Only 3 people in this room will Create successful companies*

Most startups fail will Yours?

“July 2009 was the wettest July on record in Ireland”

“that month, a new life rocked my world…”

“that month, I left an exceptional company I helped create from scratch”

“From the very beginning, I had embraced Agile development to grow a world-class software organization”

1 Agile

Software Development

Weeks

Until then, I was mostly familiar with the traditional “waterfall” approach

- Stringent contracts - Fixed scope - Fixed date based on early estimate or cost of delay ⇒ All features are equally important, ⇒ Big cushion to contain risk (contingency) ⇒ All or nothing

- Big handoffs (transaction costs) - Last phases compressed -  lots of Work In Process (WIP) - -Unknown integration phase length - - poor progress visibility

- Late changes are unwelcomed - Scope creep - Unbalanced demand - -no time for process improvement - - quality suffers

- Late Releases, - poor quality -  poor staff morale -  low customer satisfaction

Fixed-Price/ Fixed Scope Contracts + BDUF

Sequential process (waterfall)

New opportunities/ Change requests

Release

…which was fundamentally inadequate in my domain

“ (i.e. the faster you find your flaws, the faster you move on to what works)�

A business strategy lesson confirmed what I had realized

build cheap, fail fast

How can Agility Help?

“What can we observe here?”

“can you spot any difference?”

from predictive...

...to adaptive

“How do you see the world?”

Manifesto for Agile So2ware Development

We are uncovering be;er ways of developing so2ware by doing it and helping others do it. Through this work we have come to value:

Individuals and interacCons over processes and tools Working so2ware over comprehensive documentaCon

Customer collaboraCon over contract negoCaCon Responding to change over following a plan

That is, while there is value in the items on

the right, we value the items on the le2 more.

h;p://agilemanifesto.org/iso/it/

Scrum

eXtreme Programming

Crystal Clear

Feature Driven Development

DSDM

…

Lean So2ware

Under the umbrella of agile (values & principles), THERE ARE several methodologies (implementations)

Whole team Coding standard Test-‐Driven Development (TDD) CollecCve ownership Customer tests Pair programming Refactoring Planning game ConCnuous integraCon Simple design Sustainable pace Metaphor Small releases

I’ve embraced XP’s technical practices since 2001

I then integrated XP with Scrum, the most popular agile framework to date

More prescriptive More adaptive

Henrik Kniberg

XP (13)

Scrum (9)

Kanban (5)

Do Whatever (0)

RUP (120+)

•  Architecture Reviewer •  Business Designer •  Business-‐Model Reviewer •  Business-‐Process Analyst •  Capsule Designer •  Change Control Manager •  Code Reviewer •  ConfiguraCon Manager •  Course Developer •  Database Designer •  Deployment Manager •  Design Reviewer •  Designer •  Graphic ArCst •  Implementer •  Integrator •  Process Engineer •  Project Manager •  Project Reviewer •  Requirements Reviewer •  Requirements Specifier •  So2ware Architect •  Stakeholder •  System Administrator •  System Analyst •  Technical Writer •  Test Analyst •  Test Designer •  Test Manager •  Tester •  Tool Specialist •  User-‐Interface Designer •  Architectural analysis •  Assess Viability of architectural proof-‐

of-‐concept •  Capsule design •  Class design •  Construct architectural proof-‐of-‐

concept •  Database design •  Describe distribuCon •  Describe the run-‐Cme architecture •  Design test packages and classes •  Develop design guidelines •  Develop programming guidelines •  IdenCfy design elements •  IdenCfy design mechanisms •  Incorporate design elements •  PrioriCze use cases •  Review the architecture •  Review the design •  Structure the implementaCon model •  Subsystem design •  Use-‐case analysis •  Use-‐case design •  Analysis model •  Architectural proof-‐of-‐concept •  Bill of materials •  Business architecture document •  Business case •  Business glossary •  Business modeling guidelines •  Business object model •  Business rules •  Business use case

•  Whole team •  Coding standard

•  TDD •  CollecCve ownership

•  Customer tests

•  Pair programming

•  Refactoring •  Planning game

•  ConCnuous integraCon

•  Simple design •  Sustainable pace

•  Metaphor •  Small releases

•  Scrum Master •  Product Owner

•  Team •  Sprint planning meeCng

•  Daily Scrum •  Sprint review •  Product backlogt

•  Sprint backlog •  BUrndown chart

•  Visualize the workflow

•  Limit WIP • Measure and opCmize flow

• Write explict policies

•  Improve collaboraCvely

•  Business use case realizaCon •  Business use-‐case model •  Business vision •  Change request •  ConfiguraCon audit findings •  ConfiguraCon management plan •  Data model •  Deployment model •  Deployment plan •  Design guidelines •  Design model •  Development case •  Development-‐organizaCon assessment •  End-‐user support mateirla •  Glossary •  ImplementaCon model •  InstallaCon arCfacts •  IntegraCon build plan •  Issues list •  IteraCon assessment •  IteraCon plan •  Manual styleguide •  Programming guidelines •  Quality assurance plan •  Reference architecture •  Release notes •  Requirements a;ributes •  Requirements

management plan •  Review record •  Risk list •  Risk management plan •  So2ware architecture

document •  So2ware development

plan •  So2ware requirements specificaCon •  Stakeholder requests •  Status assessment •  Supplementary business specificaCon •  Supplementary specificaCon •  Target organizaCon assessment •  Test automaCon architecture •  Test cases •  Test environment configuraCon •  Test evaluaCon summary •  Test guidelines •  Test ideas list •  Test interface specificaCon •  Test plan •  Test suite •  Tool guidelines •  Training materials •  Use case model •  Use case package •  Use-‐case modeling guidelines •  Use-‐case realizaCon •  Use-‐case storyboard •  User-‐interface guidelines •  User-‐interface prototype •  Vision •  Work order •  Workload analysis model

Henrik Kniberg

Compare for understanding, not judgment

Weeks

iterative development enabled us to continuously deliver value

Customer withdraws cash As a customer, I want to withdraw cash from an ATM, so that I don’t have to wait in line at the bank.

Ref: h;p://dannorth.net/introducing-‐bdd

User stories were our “placeholders for conversations”

To DO Doing Done

Family 1

Unplanned Next

Burndown

Days

Wo

rk L

eft

Every day, we held a quick standup meeting to synchronize our efforts

Good Bad Next

Do more Do Less

Stop Doing

Start Doing

Keep Doing

Every 2 weeks, we demonstrated what we built and held a team retrospective

Product owners, scrum masters, teams and management worked together to create value & remove impediments

Visibility Adaptability

Business Value Risk

Agile Development Traditional Development

what can you expect from an agile team/organization?

We crafted opinionated software

“The best software has a vision. The best software takes sides. … Decide what your vision is and run with it.” -- 37 signals

We won awards and respect…

we could almost touch the sky…

Almost

“July 2009 was the wettest July on record in Ireland”

I’ll remember it as the month

matteo was born

But it is also the month I had to let go of a dream

…Like sand through my fingers

… so I became a Lean & Agile consultant!

On my first mission, a cio asked me a question that haunts me to this day…

“If you were so smart, why did you fail?”

2 Lean

Software Development

I became increasingly intrigued by the rise of Lean and its influence in the agile circles

There are 7 principles of lean thinking which are most relevant to software development

Eliminate Waste Build quality in Create knowledge Defer commitment Deliver fast Respect for people Optimize the whole

Lean is heavily inspired by Toyota’s breakthroughs in operational excellence

All we are doing is looking at the timeline from the moment the customer gives us an order to the point we can collect the cash. And we are reducing that timeline by removing the non-value-added wastes.

--- Taiichi Ohno, Founder of TPS

“

What do You

know about Kanban?

Kanban Enables

Just-in-time

Kanban has 5 rules:

1.  Visualize your workflow

2.  Limit your “Work in process” (WIP)

3.  Measure and optimize flow

4.  Write Explicit policies

5.  Improve collaboratively

Kanban starts from wherever

your are already! (Kanban + SDLC)

One day in Kanban land (1/6) Courtesy of Henrik Kniberg (www.crisp.se)

Ref: h;p://is.gd/3gAIO

Have you noticed?

Explicit limits enable a

collaborative game

Kanban is a great enabler, but it represents only the tip of the iceberg…

1.  What Toyota does

2.  Identifying and removing waste

3.  A problem-identifying and problem-solving system

As a consequence, there are many possible definitions of Lean, all somewhat limited

During my extensive work on “a3 thinking”*, a Toyota management process to systematically solve problems, improve and mentor…

(*) I’m writing a book about it!

I discovered that a3 thinking = Lean thinking, a vivid expression of the scientific method!

“Hence, I offer you my own definition”

“ (*) replace with “create customer value” or “reach results”, if you prefer

Lean is a business strategy to make money* THROUGH the development of people

Using Lean and agile, I brought success to many clients, from large enterprises to fast-growing companies around Europe

But that old question still

remained unanswered…

… Until one day

3 Lean Startup

… I entered a new world

Build

Measure

Learn idea

Product data

Today I have opinions assumptions

… which I validate through experiments

… that force me to “get out of the building”

… iterate my solutions with low fidelity MVPs

… and Activate enthusiastic earlyvangelists with a glimpse of a future that will come

Strategy vs. Execution

So, where is the sweet spot?

Final Thoughts

--- Me (1967 - )

They create the conditions to inevitably converge to it.

Smart entrepreneurs don’t dream of success. “

Thank you!

Claudio Perrone

[email protected] www.agilesensei.com www.twi;er.com/agilesensei

Evaluate your own learning!

What did you learn? How will you apply it? How will it benefit your venture? Suggestions or questions you still have?

[email protected] www.agilesensei.com www.twitter.com/agilesensei

Write down…

Lean & agile 101 for Astute Entrepreneurs

Technology

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